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Page 1: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Economic Internationalization Data 2017

< Summary Version >

Page 2: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Economic Internationalization Data 2017(Highlights ①)Asian Degree

Kyushu’s Asian degree is higher than the national average in five categories (“Export Value,” “Businesses Expanding Overseas,” “Foreign Entrants/Visitors,”

“ International Air Routes,” and “Sister city relationships”), indicating its strong economic ties with Asian countries, but not in “Import Value”.

International Trade 【Highlights】

○Kyushu’s Trade Value etc.• Kyushu’s trade value in 2016 , decreased both in exports and imports compared to the previous year.

Export value 5.6548 trillion yen (down 5.1% YOY, nationwide JPY 70.358 trillion, 8.1% in vs. Japan total, down 7.4% YOY)Import value 4.4643 trillion yen ( down 21.4% YOY, nationwide JPY66.42 trillion, 6.8% in vs. Japan total, down 15.8% YOY)

• Both export and import figures decreased due to stronger JPY than the previous year (exchange rate: JPY121.04/US dollar in 2015→JPY108.79/US dollar in 2016).

• Thanks to the contribution of motor vehicle industries, the export volume increased slightly in spite of the negative impact of the Kumamoto Earthquakes in April.

• Import volume decreased considerably compared to the previous year, affected by the decline in the price of natural resources such as petroleum.

• Trade balance calculated by deducting the exports from the imports was plus JPY 1.1905 trillion, which resulted in the trade surplus for 2 years in a row.

(Nationwide balance became positive for the first time in 6 years.)

○ Trading Between Kyushu and Foreign Countries

• In 2016, Kyushu’s biggest trading partner was China, followed by U.S.A. and South Korea (the same rank order as previous year based on the total trade value).

• However, both of the exports and imports with China declined drastically from the previous year.

• For export, China is the biggest partner, followed by U.S.A., South Korea, Taiwan, Hong Kong and etc., showing that Asian countries account for a large share in

the total exports.

• For import, China is also the biggest partner, followed by Australia, Saudi Arabia, South Korea, and Indonesia etc., showing that resource-rich countries account

for a large share in the total imports.

• ※Myanmar and the share of U.K. out of EU are newly added.

○Kyushu’s trade by industry• Exported items from Kyushu to overseas are motor vehicles, semiconductors etc., ships and boats, flat-rolled products, and semicon machinery etc. in descending

order, and these 5 items account for over 50% of the total.

• The top imported items from overseas to Kyushu are mineral fuels and raw materials such as petroleum, coal, ore of nonferrous, and petroleum gas

etc.

Page 3: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Economic Internationalization Data 2017(Highlights ②)

・ Among 994 Kyushu businesses expanding overseas until 2016, 15 companies newly started its operation within 2016, which was less than half of the previously year (32). For business locations, nearly 80% of the businesses in total are based in Asia, including the majority of 359 China-based and 237 ASEAN-based businesses.

• As of 2014, 440 foreign affiliates have expanded their businesses in Kyushu. Among those, 303 companies accounting for a lit tle less than 70% are based in Fukuoka, followed by Kumamoto and Kagoshima.

Interpersonal Exchange with Foreign Countries

• In 2016, 2.31 million foreigners entered Japan via Kyushu (up12.9% year over year), and exceeded 2 million for two years in a row. By nationality, 95.9% of the

total entrants/visitors are from Asian countries including South Korea (60.1%) followed by Taiwan, China, and Hong Kong. More Asian people entered Kyushu

compared to the other regions in Japan, and for the South Korean in particular, nearly 30% of the total visitors entered via Kyushu.

• Recently more and more foreign cruisers call over at the ports in Kyushu. They visit 715 times in 2016, which was nearly 40% more than the previous year.

Nationwide, Hakata port was ranked No.1 and (Nagasaki port was No.2 )for 2 years in a row.

• In 2016, Kyushu received a total of 59,053 foreign workers (up 21.9% from previous year). By industry, the majority was at manufacturing industries (28.2%),

followed by wholesale, retail, and food services.

• In 2016, Kyushu received 19,498 foreign students (up 12.3% from previous year) reaching a record high. By nationality, the majority was from China(35.9%),

followed by Vietnam(19.8%) and Nepal(15.6%), showing that more than 90% of the total were from Asian countries.

Topics【Japan-EU Trade Trends】• Japan’s trade value with EU accounts for a little more than 10% of the entire trade value of exports and imports.

• In the trade of food products, a large excess of imports has continued for years.

• Japan’s imports of food products from EU account for a little more than 10% of the total, of which wine accounts for more than 70%.

【Impact of the Kumamoto Earthquakes】○Export Trends

• After Kumamoto Earthquakes in April, the volume had decreased in all of the major commodities and the total export value had also kept declining for

consecutive years until October, however, it has turned positive in each item as well as in total export amount since November.

• Cycles with engines which were the most affected by the Earthquakes had decreased drastically since April and recorded the considerable decline by 85.5%

YOY in June, however, it turned positive after October.

○Tourism

• Affected by Kumamoto Earthquakes, the number of overnight visitors including foreign tourists in Kyushu especially in May decreased drastically compared to

the same month in the previous year.

• Thanks to the subsidization program (Kyushu Restoration Discount) designed to assist tourist-focused businesses in Kyushu by offering discounts to travelers,

and the efforts by local governments to attract more tourists, the number of tourists(both domestic and foreign)staying in Kyushu recovered to the previous

year’s level by the gross. Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year.

Outward / Inward Investments

Page 4: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Table of Content Kyushu Economic Internationalization Data 2017

◎Highlights

Global development of Kyushu-based businessesPart1. Basic Data for Kyushu Internationalization

Chapter 1 Characteristics of Kyushu 1

Chapter 2 Trade of Kyushu 6

Chapter 3 Kyushu’s External and Internal Investment 19

Chapter 4 Kyushu’s International Human Exchange 29

Part2. Economic Relations between Kyushu and

Other Countries/RegionsChapter1 Economic Relation between Kyushu and South Korea 45

Chapter2 Economic Relation between Kyushu and China 52

Chapter3 Economic Relation between Kyushu and Yellow

Sea Rim Economic Zone 59

Chapter4 Economic Relation between Kyushu and Taiwan 64

Chapter5 Economic Relation between Kyushu and Hong Kong 70

Chapter6 Economic Relation between Kyushu and ASEAN 76

Chapter7 Economic Relation between Kyushu and Vietnam 87

Chapter8 Economic Relation between Kyushu and Thailand 93

Chapter9 Economic Relation between Kyushu and Singapore 99

Chapter10 Economic Relation between Kyushu and Malaysia 105

Chapter11 Economic Relation between Kyushu and Phillipines111

Chapter12 Economic Relation between Kyushu and Indonesia 117

Chapter13 Economic Relation between Kyushu and Myanmar 123

Chapter14 Economic Relation between Kyushu and India 129

Chapter15 Economic Relation between Kyushu and EU

(including UK) 135

Chapter16 Economic Relation between Kyushu and Russia 157

Chapter17 Economic Relation between Kyushu and U.S.A. 163

Chapter18 Economic Relation between Kyushu and Australia 169

Part3. Kyushu’s Major Industries by CategoryChapter1 Motor vehicles and Their Parts 177

Chapter2 Semiconductors etc. 181

Chapter3 Iron and Steel 183

Chapter4 Ships and Boats 185

Chapter5 Food Products 186

Chapter6 Agricultural, Forestry and Fishery Products 189

Shapter7 Mineral Fuels 205

◎Topics 1.Trends in Exports and Imports by Main Economic Zone

(P18)

2.Attractive and Obstructive Factors for foreign affiliates to

Expand their Business in Japan(p25)3.Trend in the Number of Total foreign visitors Staying

Overnight in Kyushu (p33)4.Tourism(p41)5.Exports of “Parts of Motor Vehicles” from South Korea

(p51)

6.Exports of Motor Vehicles from Kyushu to China (p58)7.Yellow Sea Rim Economic and Technology Exchange

Conference (p60)8.ASEAN Share of Kyushu and Nationwide(p86)9. Trends in Trade between Japan and EU(p148)10.Trends in Trade with TPP Members(p175)11.Impact of the Kumamoto Earthquakes on Kyushu’s

Export Trend(p208)12.Impacts of the Kumamoto Earthquakes to Tourism

(p209)

◎Appendix

Page 5: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Economic Internationalization Data 2017 -Contents

International Trade

・Characteristics of Kyushu(Economic Exchange with Asian Countries) p1

・Kyushu Trade (Summary) p2 ・Trade Trends of Kyushu by Commodity p3 ・Trade Trends of Kyushu by Partner p4

・Kyushu Balance of Trade p5 ・Trade Trends of Kyushu by partner(South Korea, China, Myanmar, EU(incl.UK)) p6-11

・Trade Trends of Kyushu by Industry(motor vehicles, semiconductors etc., food products, mineral fuels)p12-15

Asian Degree ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p1

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p2

・Kyushu Businesses Expanding Overseas p16 ・Foreign Affiliates Operating in Kyushu p18

External / Internal Investment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p16

・Foreign Visitors Entering Japan via Kyushu p19 ・Foreign Workers in Kyushu p20 ・Foreign Students in Kyushu p21

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p19Interpersonal Exchange with Foreign Countries

・Trade Trends of Japan with EU p22 ・Impacts of the Kumamoto Earthquakes(Export Trends)p23 ・ Impacts of the Kumamoto

Earthquakes(Tourism) p24

Topic ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・p22

Page 6: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

To evaluate the depth of the economic exchanges between Kyushu and the nations of the Asian region, the percentage of Kyushu’s

economic engagement in the Asian region is defined as Kyushu’s “Asian degree,” with a focus on six (6) categories: “Export Value,”

“Import Value,” “Businesses Expanding Overseas,” “Foreign Visitors,” “International Air Routes,” and “Sister City relationships.” When

Kyushu’s Asian degree is compared with that of Japan’s nationwide Asian degree for the year 2016, Kyushu shows a strong economic tie

throughout the Asian region in terms of the five categories except “Import value”.

Characteristics of Kyushu(Economic Exchange with Asian Countries)

Comparison of Kyushu and Nationwide Asian Degree

Note:The figures in “Import Value” , “Foreign Visitors” and “Export Value” are based on the single-year data for 2016. Those in “Businesses Expanding Overseas” and “Sister city relationships” are the

cumulative values up to 2016.; and the figure in “International Air Routes” is based on data confirmed as of 2016.

Source:Prepared by Kyushu Bureau of Economy, Trade and Industry based on "Trade Statistics of Japan" (Ministry of Finance), “2016 Kyushu/Yamaguchi Local Business Expanding Overseas” of Kyushu

Economic Research Center (Public Interest Incorporated Foundation), “2017 Complete List of Japanese Businesses Expanding Overseas (Country-specific Edition)” of Toyo Keizai Inc., “Annual

Report of Statistics on Legal Migrants” of Ministry of Justice, “JTB Timetable March 2017 Edition” of JTB Publishing, Inc., and the website of Council of Local Authorities for International Relations

(General Incorporated Foundation).

77.6%

49.7%

55.1%

91.7%

95.9%

57.8% 62.6%

50.3%

35.6%

72.4%

83.8%

53.0%

海外進出企業件数

Import value

姉妹提携自治体数

国際航空路線数

外国人入国者数

Export value

Kyushu

Nationwide

Import Value

Foreign VisitorsSister City

relationships

Businesses Expanding

Overseas

International

Air Routes

Export Value

Category Unit Asia GlobalAsian

DegreeAsia Global

Asian

Degree

Businesses

Expanding OverseasCase 771 994 77.6% 18,719 29,904 62.6%

Import Value 100M yen 22,173 44,643 49.7% 331,988 660,420 50.3%

Sister city relationships102 185 55.1% 612 1,717 35.6%

International

Air RoutesRoute 33 36 91.7% 255 352 72.4%

Foreign Visitors People 2,214,404 2,309,519 95.9% 19,451,400 23,218,912 83.8%

Export Value 32,676 56,548 57.8% 371,070 700,358 53.0%

Kyushu Nationwide

Case

100M yen

Page 7: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ In 2016, the export value of Kyushu was JPY5.6548 trillion (down 5.1% YOY) which decreased from previous year for the first time in past 4

years and the import value was JPY4.4643 trillion (down 21.4% YOY) which decreased for 2 years in a row.

○For country, the export to China(Contribution ratio※:down3.0%), Taiwan(down0.9%), and Singapore(down0.9%)decreased. Meanwhile, the

export to U.S.A.(up1.5%), Italy(up1.0%), and Korea (up0.6%)increased.

○The import from China(Contribution ratio:down3.3%), Saudi Arabia(down2.6%) and Australia(down2.2%)has decreased.

○Looking at the ratio of Kyushu trade in Japan, the export was 8.1% having increased from the previous year but the import was 6.8% having

decreased from the previous year and dropped below 7% for the first time in 12 years.

★Key Point of Year 2016★Both of the exports and imports have declined due to stronger JPY than the previous year. Thanks to the contribution of motor vehicle

industries, the export value declined only slightly in spite of the negative impacts of the Kumamoto Earthquakes in April. Meanwhile, the

import value decreased considerably compared to the previous year, affected by the decline in the price of natural resources such as

petroleum, which resulted in the continuous trade surplus for 2 years in a row.

Kyushu Trade (Summary)

Source: Trade Statistics of Japan (Ministry of Finance)

Kyushu Trading Value vs. Global/Nationwide Trading Value

Note※: What is contribution ratio? In trade statistics, it is calculated by (Gap from the previous

term) ÷(Total export/import of the previous term), and its increased value indicates how much it contributes to the export or import. It is indicated in units of percent.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Exports 2.8 3.3 3.4 4.0 4.4 5.1 5.9 5.9 4.1 5.2 5.2 5.2 5.6 5.8 6.0 5.7

Imports 2.7 2.7 2.8 3.4 4.3 5.4 6.1 7.2 4.1 4.9 5.6 5.6 6.6 6.8 5.7 4.5Export (vs.

Japan Total)5.8 6.2 6.2 6.5 6.6 6.7 7.0 7.3 7.6 7.7 8.0 8.1 8.1 7.9 7.9 8.1

6.3 6.5 6.4 6.9 7.5 8.1 8.4 9.1 7.9 8.1 8.3 8.0 8.1 7.9 7.2 6.8Import (vs.

Japan Total)

0

1

2

3

4

5

6

7

8

9

10

0

1

2

3

4

5

6

7

8vs. national total(%)(Tn. yen)

Page 8: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ Exported commodities from Kyushu to overseas are motor vehicles, semiconductors etc., ships and boats, flat-rolled products and semicon

machinery etc. in descending order, and these 5 items account for over 50% of the total. In 2016, the exports increased for motor vehicles

(contribution:up3.0%)and ship and boat(up1.5%), on the other hand, it decreased for visual apparatus(down1.9%), flat-rolled

products(down1.8%), rubber tires and tubes(down1.8%) etc.

○The top import items from overseas to Kyushu are mineral fuels, raw materials such as petroleum, coal, ore of nonferrous, and petroleum gas etc.

The import value in 2016 decreased for petroleum (contribution:down7.9%)and petroleum gas(down3.2%) and iron ore and concentrates and

concentrates, petroleum products, and coal have also dropped below the previous year.

Kyushu Exports to the World (by commodity) Kyushu Imports from the World(by commodity)

Trade Trends of Kyushu by Commodity

(Unit:100million yen, %)

Motor vehicles13,346

23.6%

Semiconductors etc.

6,581

11.6%

Ships and

boats4,7958.5%

Flat-rolled

products

3,482

6.2%

Semicon

machinery etc.

3,0125.3%

Rubber tires

and tubes

2,489

4.4%

Organic chemicals1,866

3.3%

Power

generating

machine1,420

2.5%

Others19,558

34.6%

Total value of

Kyushu Exports to

the World

(2016 )

5.6548 trillion yen

Petroleum

7,389

16.6%

Coal3,010

6.7%

Ore of nonferrous2,831

6.3%

Petroleum gas

2,7316.1%

Semiconductors

etc.

2,466

5.5%Iron ore and

concentrates

1,632

3.7%

Parts of

motor

vehicles1,582

3.5%

Petroleum

products978

2.2%

Organic chemicals

933

2.1%

Fish(fresh/frozen)893

2.0%

Others20,199

45.2%

Total value of

Kyushu Imports from

the World(2016)

4.4643 trillion yen

(Unit:100million yen, %)

Source: Trade Statistics of Japan (Ministry of Finance)

Page 9: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○The biggest trade partners for Kyushu in 2016 was China, U.S.A. and South Korea in descending order (the same rank order as the previous year

in trade total basis).

○The biggest export partners are China, U.S.A., South Korea, Taiwan and Hong Kong etc. in descending order. A large percentage of the exports

are toward Asian countries.

○ The biggest import partners are China, Australia, Saudi Arabia, South Korea and Indonesia etc. in descending order. A large percentage of the

imports comes from resource-rich countries.

Trade Trends of Kyushu by Partner

Kyushu’s Export Partners (Countries/Regions) Kyushu’s Import Partners(Countries/Regions)

(Unit:100 million yen, %)

China

10,887

19.3%

USA7,676

13.6%

South Korea7,451

13.2%Taiwan

3,374

6.0%

Hong

Kong

2,772

4.9%

Singapore1,800

3.2%

Thailand1,637

2.9%

Panama1,471

2.6%

United Arab

Emirates1,343

2.4%

Netherlands1,285

2.3%

Others16,853

29.8%Total value of

Kyushu Exports

to the World

(2016)

5.6548 trillion yen

China9,097

20.4%

Australia4,514

10.1%

Saudi Arabia3,024

6.8%South

Korea2,625

5.9%

Indonesia2,588

5.8%

USA2,454

5.5%

Taiwan2,424

5.4%United Arab

Emirates

2,074

4.6%

Thailand

1,522

3.4%

Brazil1,274

2.9%

Others13,047

29.2% Total value of

Kyushu Imports from

the World

(2016)

4.4643 trillion yen

Source: Trade Statistics of Japan (Ministry of Finance)

(Unit:100 million yen, %)

Page 10: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○Trade balance of Kyushu in 2016 was plus JPY 1.1905 trillion which achieved trade surplus for 2 years in a row. (Nationwide trade produced

surplus for the first time in the past 6 years in a row.)

○Addressing the Kyushu balance of trade from individual commodities, while the excess of export for transport equipment increased from the

previous year, the excess import of mineral fuels had decreased even further, which brought Kyushu the large trade surplus even more than the

previous year.

Kyushu Balance of Trade

Kyushu’s Balance of Trade (by major commodity) (2015-2016)

Kyushu’s Balance of Trade (by Partner) (2016)

0.80.6

-1.2

-1.0

1.2

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

(兆円)

2,778

-4,720-6,360

-21,189

4,015 6,890 5,926 4,187 14,849-820

11,905

-3,987 -5,151

-13,897

3,5155,185

6,491

3,461

17,388

-1,100

-25,000

-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

Total V

alue

Food

Mate

rial P

rodu

ct

2015

2016

(100M yen)

(Tn. yen)M

ineral

Fuels

Chem

ical

Pro

ducts

Pro

ducts

by Mate

rial

Non-ele

ctric

Mac

hin

ery

Ele

ctric

Equ

ipment

Tran

sport

Equ

ipment

Oth

ers

(Unit: 100 million yen)

(yrs)

Partner Country/Region Trade Surplus

USA 5,221 Australia ▲ 3,707

South Korea 4,826 Saudi Arabia ▲ 2,341

Hong Kong 2,643 Indonesia ▲ 1,842

China 1,790 Brazil ▲1,080

Singapore 1,608 Russia ▲ 777

Kyushu Balance of Trade (2016) 1.1905 trillion yen

Trade DeficitsPartner Country/Region

Source: Trade Statistics of Japan (Ministry of Finance)

Trends in Kyushu Balance of Trade and

Foreign Exchange Rate (JPY/US dollar)

Page 11: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○For Kyushu’s trade with South Korea in 2016, the export value was JPY745.1 billion which marked the first increase in three years (up 5.1% YOY). The import declined for the 4th consecutive year to JPY262.5 billion(down 4.5% YOY).

○The export items, in descending order of amount, are semicon machinery etc., semiconductors etc., flat-rolled products and etc. What contributed largely to the increase in exports were semicon machinery etc.(contribution ratio: up11.8%) and motor vehicles(up11.8%). On the other hand, there was a decline in organic chemicals(down1.8%)and Flat-rolled products (down1.8%).

○ The import items, in descending order of amount, are parts of motor vehicles, flat-rolled products, and petroleum products etc. What contributed largely to the increase in imports were petroleum spirits (contribution ratio: up3.6%) semicon machinery etc. (up2.6%). On the other hand, there was a decline in heavy fuel oils(down4.1%), telephony and telegraphy(down2.6%), and organic chemicals(down1.5%).

Trends in Trading Value of Kyushu with South Korea Kyushu Major Trade Commodities with South Korea

Kyushu Trade Trends with South Korea

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 yrs

ExportValue

ImportValue

Export vs.Japan Total

Import vs.Japan Total

貿

vs. Japan Total(%)(100M yen)

Major Export Commodities Export Value(100M yen)Percentage(%)Semicon machinery etc. 1,703 22.9%Semiconductors etc. 1,458 19.6%Flat-rolled products 534 7.2%Plastic materials 456 6.1%Organic chemicals 367 4.9%Scientific and optical instrument 349 4.7%Motor vehicles 311 4.2%Power generating machine 133 1.8%Iron and steel scrap 112 1.5%Copper and copper alloys 85 1.1%Others 1,942 26.1%

Total 7,451 100%

Import value(100M yen) Percentage(%)

Semicon machinery etc.

Organic chemicals

Major Import Commodities

Parts of motor vehicles 269 10.2%Flat-rolled products 267 10.2%Petroleum product 215 8.2%Semiconductors etc. 150 5.7%

109 4.1%

108 4.1%Structural parts 60 2.3%Antibiotic preparation 60 2.3%Fish(fresh/frozen) 54 2.1%Vegetable 47 1.8%Others 1,286 49.0%

Total 2,625 100%Source: Trade Statistics of Japan (Ministry of Finance)

Page 12: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○For Kyushu’s trade with China in 2016, the export value was JPY1.887 trillion which marked the first decline in four years (down14.3% YOY). The

imports declined for the first time in 7 years to JPY909.7 billion(down16.9% YOY).

○The export commodities, in descending order of amount, are motor vehicles, semiconductors etc. and semicon machinery etc. What contributed

largely to the increase in exports were motor vehicles (contribution ratio: up4.7%). On the other hand, there was a decline in visual

apparatus(down4.3%), organic chemicals(down 2.2%) and scientific and optical instruments(down 2.0%).

○The import items, in descending order of amount, are semiconductors etc., parts of motor vehicles and organic chemicals etc. What contributed

largely to the decrease in imports were office machines (contribution ratio: down3.0%)and semiconductors etc. (down2.9%).

Kyushu Major Trade Commodities with China

Kyushu Trade Trends with China

Trends in Trading Value of Kyushu with China

3,430 31.5%Semiconductors etc. 951 8.7%Semicon machinery etc. 894 8.2%Organic chemicals 676 6.2%Copper and copper alloys 665 6.1%Flat-rolled products 567 5.2%Plastic materials 512 4.7%Power generating machine 444 4.1%Scientific and optical instruments 160 1.5%Iron and steel scrap 107 1.0%Others 2,481 22.8%

Total 10,887 100%

Motor vehicles

Semiconductors etc. 674 7.4%Parts of motor vehicles 641 7.0%

Organic chemicals 420 4.6%Knitted and crocheted clothing 258 2.8%Vegetable 249 2.7%Oil-seeds cake and meal 234 2.6%Electrical apparatus 232 2.6%Plastic 213 2.3%Audio and visual apparatus 186 2.0%Heating / cooling equipment 172 1.9%Others 5,816 63.9%

Total 9,097 100%

0%

2%

4%

6%

8%

10%

12%

14%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 yrs

vs. Japan Total(%)(100M yen)

Source: Trade Statistics of Japan (Ministry of Finance)

ExportValue

ImportValue

Export vs.Japan Total

Import vs.Japan Total

Major Export Commodities Export value(100M yen) Percentage (%)

Major Import Commodities Import value(100M yen) Percentage(%)

Page 13: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ Since 2012, the sanction measures by the United States and European countries has been relaxed, which greatly increased the trade value.

Kyushu’s trade with Myanmar in 2016 marked the first decline in four years since 2012 to the export amount of JPY 6.9 billion(down16.0% YOY).

The import increased to JPY 2.7 billion (up 2.9% YOY) to mark the 4th consecutive year growth since 2012.

○The export items, in descending order of amount, are motor vehicles, rubber tires and tubes, insulated wire and cable etc. What contributed largely

to the increase in exports were rubber tires and tubes(contribution ratio: up3.2%), insulated wire and cable(up1.3%). On the other hand, there was

a decline in motor vehicles(down 14.1%), flat-rolled products(down 8.0%)and construction machines (down1.4% ).

○The import items, in descending order of amount, are clothing, vegetables, and clothing, knitted or clothe etc. What contributed largely to the

increase in imports were clothing(contribution ratio: up7.8% ), clothing, knitted or clothe (up5.6%) and vegetables (up2.6%).

Kyushu Major Trade Commodities with Myanmar

Kyushu Trade Trends with Myanmar

九州の対ミャンマー貿易額の推移

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

10

20

30

40

50

60

70

80

90

100

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16yrs

Middle Classification

Motor vehicles Transporting equipment 55 80.2%

Rubber tires and tubes Rubber products 4 6.1%

Insulated wires and cables Electric equipment 1 1.6%

Agricultural machinery Non-electric machinery 0.8 1.1%

Scientific and optical instruments Precision instruments 0.7 1.1%

Construction machines Non-electric machinery 0.7 1.1%

Flat-rolled products Iron and steel products 0.7 1.1%

Power generating machine Non-electric machinery 0.5 0.7%

Organic chemicals Element and compound 0.5 0.7%

Heating or cooling machine Non-electric machinery 0.3 0.5%

Others 4 6.0%

69 100.0%Total

Major Import Commodities Middle classification Percentage(%)

Clothing Clothing and accessory 15 56.1%

Vegetables Fruits and vegetables 3 12.7%

Clothing, knitted or clothe Clothing and accessory 2 8.2%

Fish(fresh/frozen) Fish and fish preparation 1 2.0%

Others 6 21.0%

27 100.0%Total

Source: Trade Statistics of Japan (Ministry of Finance)

Trends in Trading Value of Kyushu with Myanmarvs. Japan Total(%)(100 M yen) Major Export Commodities Export

value(100M yen) Percentage(%)

Import value(100M yen)

Page 14: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Trade Trends with EU ①○ For Kyushu’s trade with EU in 2016, the export value increased to JPY 563.1 billion (up15.1% YOY) to mark the 3rd consecutive year growth.

The import declined for the first time in five years to JPY 153.1 billion (down13.5% YOY). ○ The values of exports from Kyushu were JPY 128.5 billion to the Netherlands (down 6.4% YOY), JPY 87.6 billion to Italy(up 185.3% YOY), JPY

75.6 billion to Germany (down 2.5% YOY) etc. For U.K., the value increased to JPY 73.4 billion to mark the 4 th consecutive year growth (8.8% up YOY and the ratio within EU: 13.0% ) .

○ The values of imports to Kyushu were JPY 36.9 billion from Germany (down 17.8% YOY ), JYP 36.1 billion to France (up16.8% YOY), JPY 16 billion from Spain (down 24.2% YOY) etc. For U.K., the value decreased from the previous year to JPY15billion (down 16.8% YOY, the ratio within EU: 9.8%).

Kyushu’s Export and Import Trends within EU by Partner (Top 10 Countries)

九州の対EU貿易額の推移

Country Export Value (100M yen) Percentage(%)

Netherlands 1,285 22.8%

Italy 876 15.6%Germany 756 13.4%

U.K. 734 13.0%Spain 501 8.9%Belgium 426 7.6%France 357 6.3%Malta 287 5.1%Sweden 91 1.6%Ireland 63 1.1%Others 255 4.5%

EU Total 5,631 100.0%

Country Import Value(100M yen) Percentage(%)

Germany 369 24.1%

France 361 23.6%

Spain 160 10.5%

U.K. 150 9.8%Italy 92 6.0%Netherlands 84 5.5%Denmark 67 4.4%Finland 52 3.4%Sweden 47 3.1%Belgium 27 1.8%Others 120 7.9%

EU Total 1,531 100.0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

0

1,000

2,000

3,000

4,000

5,000

6,000

11 12 13 14 15 16 yrs

Export

Value

Import

Value

Exports vs.

Japan Total

Imports vs.

Japan Total

Source: Trade Statistics of Japan (Ministry of Finance)

vs. Japan Total(%)100M yen

Trends in Trading Value of Kyushu with EU

Page 15: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Trade Trends with EU ②○ The export items, in descending order of amount, are motor vehicles, ships and boats, and office machines etc. What contributed largely to the

increase in exports were ships and boats (contribution ratio: up15.0%) and motor vehicles (up6.6% ). On the other hand, there was a decline in

visual apparatus (down 3.0%), office machines(down 1.3%)and rubber tires and tubes (down1.1% ).

○ The import items, in descending order of amount, are power generating machine, parts of motor vehicles and electric measuring etc. What

contributed largely to the increase in imports were aircraft (contribution ratio: up2.0%). On the other hand, there was a decline in barley, unmilled

(down2.4%), audio and visual apparatus (down 1.5%), and electrical power machinery (down 1.2%).

Kyushu’s Major Trade Commodities with EU Kyushu’s Export Partners in EU for Major Commodities

10

Major Export Commodities Percentage(%)Motor vehicles 1,516 26.9%

Ships and boats 964 17.1%

Office machines 464 8.2%

Semiconductors etc. 436 7.7%

Rubber tires and tubes 355 6.3%

Cycles with engines 279 5.0%

Pump and centrifuges 144 2.6%

Visual apparatus 136 2.4%

Flat-rolled products 109 1.9%Automotive electrical good 102 1.8%

Others 1,127 20.0%

Total 5,631 100.0%

Major Import Commodities Import Value (100 M yen) Percentage(%)

Power generating machine 213 13.9%

Parts of motor vehicles 86 5.6%

Electric measuring 65 4.2%

Aircraft 60 3.9%

Meat of swine, wild boars 60 3.9%

Organic chemicals 56 3.7%

Inorganic chemicals 42 2.7%

Audio and visual apparatus 30 1.9%Paper and paperboard 26 1.7%

Wood 24 1.6%

Others 869 56.8%

Total 1,531 100.0%

U.K.477

31.5%

Spain438

28.9%

Netherlands410

27.1%

Italy123 8.1%

Ireland30

2.0%

Others37

2.4%

Export Value of Motor Vehicles to EU

( 2016)

151.6 billion yen

Italy540

56.0%

Malta285

29.6%

U.K.107

11.1%

Cyprus31

3.3%

Export Value of Ships and Boatsto EU

(2016 )

96.4 billion yen

France188

88.0%

Spain10

4.7%

U.K.7

3.2%

Germany6 2.6%

Austria1

0.5%

Others2

1.0%

Import Value of Cycles with Engines from EU

(2016)

21.3 billion yen

Spain54

62.9%

Germany24

27.8%

U.K.5

5.5%

Hungary2

2.8%

Sweden0.4

0.5%

Others0.4

0.5%

Import Value of Partsof Motor Vehiclesfrom EU

(2016)

8.6 billion yen

Source: Trade Statistics of Japan (Ministry of Finance)

Export Value (100M yen)

Kyushu’s Import Partners in EU for Major Commodities

(Unit:100 million yen, %)

(Unit:100 million yen, %)

(Unit:100 millionyen, %)

(Unit:100 millionyen, %)

Page 16: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Trade Trends with EU ③(U.K.)○ For Kyushu’s trade with EU in 2016, the export value increased to JPY 73.4 billion (up 8.8% YOY and ratio within EU:13.0% ) to mark the 4th

consecutive year growth. The import declined from the previous year to JPY 15.0 billion (up16.8% YOY and ratio within EU:9.8%).

○ The export items, in descending order, are motor vehicles, ships and boats and rubber tires and tubes etc.○ The import items, in descending order, are audio and visual apparatus, electric measuring, and wheat and meslin etc.

Kyushu’s major trade commodities with U.K.

九州の対U.K.貿易額の推移

11

0%

1%

2%

3%

4%

5%

6%

7%

8%

0

100

200

300

400

500

600

700

800

10 11 12 13 14 15 16 yrs

Middle classification Export value(100M yen) Percentage(%)

Motor vehicles Transport equipment 477 65.0%Ships and boats Transport equipment 107 14.6%Rubber tires and tubes Rubber products 38 5.2%Cycles with engines Transport equipment 36 5.0%Automotive electrical good Electric equipment 18 2.4%Titanium and its alloys Ore of nonferrous 6 0.8%Electric power machinery Electric equipment 4 0.6%Power generating machine Non-electric machinery 3 0.4%Inorganic chemicals Element and compound 2 0.3%Organic chemicals Element and compound 2 0.2%Others 41 5.5%

734 100.0%Total

Import Value(100M yen)Major Import Commodities Middle classification Percentage(%)

Audio and visual apparatus Electric equipment 25 16.9%

Electric measuring Electric equipment 24 16.1%

Wheat and meslin Cereal, cereal preparation 9 5.7%

Motor vehicles Transport equipment 8 5.6%

Power generating machine Non-electric machinery 7 4.5%

Nickel and nickel alloys Ore of nonferrous 6 3.8%

Parts of motor vehicles Transport equipment 5 3.1%

Alcoholic beverages Beverages 3 2.1%

Scientific and optical instruments Precision instruments 3 1.8%Spiegeleisen & ferro-alloy Iron and steel products 2 1.7%

Others 58 38.6%

150 100.0%Total

Source: Trade Statistics of Japan (Ministry of Finance)

vs. Japan Total(%)(100M yen)

Major Export Commodities Trends in Trading Value of Kyushu with U.K.

Page 17: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ Kyushu’s exports of motor vehicles in 2016 increased to JPY 1.3346 trillion(up 15.6% YOY)to mark the 3rd consecutive year growth. The major

destinations are the United States, followed by China and UAE.

○ The number motor vehicles produced in Kyushu in 2016 was 1.35 million(up 0.1% YOY)which accounts for approx. 15% of the total production

in Japan (9.2 million).

Trends in Export Value of Kyushu Motor Vehicles Kyushu’s Major Trading Partners(Countries/Regions)

of Motor Vehicles

Kyushu Trade Trends by Industry ①(Motor Vehicles)

Worldwide Production Volume of Motor Vehicles

(Right)

(Unit:10 thousand vehicles , %)

12

09 10 11 12 13 14 15 16 yrs

Export value 5,277 9,874 9,888 10,196 10,056 10,513 11,549 13,346Export vs. Japan Total 7.9% 10.8% 12.1% 11.1% 9.7% 9.6% 9.6% 11.8%

0%

2%

4%

6%

8%

10%

12%

14%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

vs. Japan Total(%)100M yenValue

(100 million yen) Percentage(%)

USA 3,555 26.6%

China 3,430 25.7%

UAE 932 7.0%

Mexico 717 5.4%

Taiwan 492 3.7%

Others 4,222 31.6%

Total 13,346 100.0%

2016

China2,812

29.6%

USA1,220

12.8%Japan920

9.7%

Germany606

6.4%

India449

4.7%

South Korea423

4.5%

Mexico360

3.8%

Spain289

3.0%

Canada237

2.5%

Brazil216

2.3%

Others1,967

20.7%

Worldwide Production Volume of Motor Vehicles

(2016 )94.98 million

vehicles

Source: Prepared by Kyushu Bureau of Economy, Trade and Industry based on

"Trade Statistics of Japan" by Ministry of Finance and the website of Organisation

Internationale des Constructeurs d'motor vehicles

Page 18: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ In Kyushu’s trade of semiconductors etc. in 2016, the exports decreased to JPY 658.1 billion(down 6.5% YOY) and the imports decreased to

JPY 246.6 billion(down 17.8% YOY)from the previous year. The major destination is Hong Kong followed by South Korea and China. The major

importer is Taiwan, followed by China and South Korea.

○For the export partners, Hong Kong, South Korea and the United States increased their ratio, on the other hand, those of ASEAN, China, and

Taiwan declined.

○For the import to Kyushu, Taiwan increased its ratio to 60%, on the other hand, China and ASEAN countries have decreased their ratio.

Trends in Trading Value of Kyushu Electronic Parts (Semiconductors, etc.)

Kyushu Trade Trends by Industry ②(Semiconductors etc.)

Kyushu’s Major Export Partners for Semiconductors etc.

Kyushu’s Major Import Partners for Semiconductors etc.

13

9.9%

11.4%

17.2%

19.9%

Honk Kong

24.7%

16.4%

25.2%

22.8%

21.3%

Korea

22.2%

23.1%

22.0%

24.2%

23.0%

ASEAN

20.0%

29.4%

21.1%

17.4%

16.0%

China

14.5%

9.9%

9.8%

7.8%

8.2%

Taiwan

6.0%

5.2%

3.7%

3.4%

4.4%

U.S.A.

5.2%

6.1%

6.7%

7.1%

7.3%

Others

7.4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2012

2013

2014

2015

2016

Year

27.7%

22.6%

28.0%

50.8%

Taiwan60.8%

20.5%

38.8%

51.3%

33.1%

China27.4%

28.2%

17.6%

10.0%

5.9%

Korea6.1%

18.9%

9.9%

8.6%

8.9%

ASEAN5.1%

4.7%

11.2%

2.2%

1.4%

Others0.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2012

2013

2014

2015

2016

09 10 11 12 13 14 15 16 yrs

Export value 3,756 3,600 3,898 4,730 5,030 5,989 7,039 6,581

Import value 1,533 1,454 1,277 1,628 2,066 2,820 3,000 2,466Export in vs. Japan Total 11.0% 8.7% 10.9% 14.2% 14.2% 16.2% 18.0% 18.2%

8.7% 6.8% 7.2% 9.2% 8.4% 9.8% 10.0% 9.8%

0%

3%

6%

9%

12%

15%

18%

21%

24%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

(100 M yen) vs. Japan Total(%)

Import in vs. Japan Total

Source: Trade Statistics of Japan (Ministry of Finance)

Page 19: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

Kyushu Trade Trends by Industry ③(Food Products)○Looking at the food products in Kyushu by category, the export value of fish and fish preparation are the largest, followed by beverages, other food

preparation, and meat and meat preparation. Yellowtail fish is exported the most to U.S.A., beer to South Korea, and beef and strawberry to Hong

Kong.

Fish and Fish PreparationFruits and Vegetables

BeveragesMeat and Meat Preparation

14

Honk Kong508

95.2%

Taiwan13

2.4%

Thailand7

1.3%

Others6

1.2%

Export of Strawberry

from Kyushu

(2016 )

0.5 billion yen Fish and fish

preparation

284

50.5%

Beverages

91

16.2%

Other

food preparation

55

9.8%

Meat and

meat preparation51

9.2%

37

6.5%

Fruits and vegetables28

4.9%

Others

16

2.9%

Exports of Food Products

from Kyushu to the World

by Category(2016)

56.2 billion yen

Cereals and

cereal preparation

Honk Kong

1,630

37.4%

U.S.A.1,074

24.7%

Singapore281

6.5%

U.K.262

6.0%

Cambodia244

5.6%

Macao228

5.2%

Germany161

3.7%

Thailand148

3.4%

Others331

7.6%

Export of Beef

from Kyushu

(2016 )4.4 billion yen

South Korea4592

91.4%

Taiwan390

7.8%

Others41

0.8%

Export of Beer

from Kyushu

(2016 )

5 billion yen

U.S.A.

10,151

91.5%

Canada

179

1.6%

U.K.

109

1.0%

Others

657

5.9%

Export of Yellowtail

from Kyushu

(2016 )

11.1 billion yen

(Unit:100 million yen, %)

(Unit:million yen, %)

(Unit:million yen, %)(Unit:million yen, %)

(Unit:million yen, %)

Page 20: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ In 2016, Kyushu’s import of mineral fuels decreased to JPY 1.4123 trillion (down 34.4% YOY) to mark the 3rd consecutive year of decline. Since

2015 the import unit value has declined followed by a sharp drop in the market price of resources. In addition to that, the reduction of import

volume in 2016 made the import value of mineral fuels fall greatly below the previous year that contributed to larger trade surplus.

Trends in Kyushu Imports of Mineral Fuels & Balance of Trade

Kyushu Trade Trends by Industry ④(Mineral Fuels)

Trends in Petroleum Prices in Petroleum Market

←Trends in the Volume of Kyushu’s Import of Major Mineral Fuels

15

0

20

40

60

80

100

120

04 05 06 07 08 09 10 11 12 13 14 15 16 Yrs

North Sea blend WTI Dubai

A sharp decline from ‘14-15 and a further decline in ‘16 ended in less than half of the price in ‘14.

(Unit:US dollar/barrel)

Year 2014North sea blend 98.94

WTI 93.00

Dubai 96.66

Year 2016

North Sea blend 44.05

WTI 43.32

Dubai 41.20

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Coal

(thousand MT)

Petroleum( thousand KL) LNG( thousandMT)

09 10 11 12 13 14 15 16 Yrs 09 10 11 12 13 14 15 16 Yrs 09 10 11 12 13 14 15 16 Yrs

0.00.3

-0.4 -0.5

-1.0 -1.0

0.3

1.2

1.9

2.3

2.7 2.7

3.4 3.3

2.2

1.4

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

09 10 11 12 13 14 15 16yrs

Trade Balance

Import Value of Mineral Fuels

Trade balance turned positive along with the reduction of mineral fuel import value since ‘15.

(Tn. yen)

Source: Trade Statistics of Japan (Ministry of Finance)

Page 21: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○994 Kyushu-based businesses in total have expanded their business to overseas until 2016. 15 businesses out of them started

overseas operation in 2016 , which was 53.1% decrease YOY (17 less). The total number of Japanese companies which expanded

business overseas was 29,904 as of 2016 and 779 of these started overseas operation for the first time.

○For overseas business expansion of Kyushu-based businesses, 771 target countries are in Asia including China(359) and ASEAN(237),

which account for a little less than 80% of the total. Seen throughout Japan, Asian countries account for a little more than 60%, which

means that Kyushu-based businesses expand their business to Asia more than other regions in Japan.

Countries/Regions Selected by Kyushu-based Businesses for Overseas Expansion

Kyushu Businesses Expanding Overseas ①

(Unit:Case, %)

16

UnknownCoverage-based Share (%)

46 100.0 46 100.0 32 100.0 32 100.0 32 100.0 15 100.0 41 994 29,904 100.0

Asia 41 89.1 35 76.1 24 75.0 26 81.3 23 71.9 10 66.7 27 771 18,719 62.6

China 20 43.5 12 26.1 5 15.6 6 18.8 2 6.3 - - 9 359 6,774 22.7

South Korea 2 4.3 2 4.3 2 6.3 2 6.3 - - - - 2 47 931 3.1

Hong Kong 4 8.7 2 4.3 3 9.4 1 3.1 - - - - 1 39 1,282 4.3

Taiwan 4 8.7 2 4.3 3 9.4 4 12.5 2 6.3 2 13.3 6 60 1,071 3.6

ASEAN 7 15.2 15 32.6 9 28.1 13 40.6 16 50.0 8 53.3 8 237 7,736 25.9

India 4 8.7 1 2.2 2 6.3 - - 1 3.1 - - 1 24 808 2.7

Other Asian countries - - 1 2.2 - - - - 2 6.3 - - - 5 117 0.4

EU - - 5 10.9 1 3.1 2 6.3 - - 3 20.0 7 70 3,927 13.1

Russia - - 1 2.2 1 3.1 - - - - - - 1 4 192 0.6

U.S.A. 4 8.7 - - 1 3.1 3 9.4 7 21.9 1 6.7 4 103 3,830 12.8

Australia - - - - 1 3.1 - - - - 1 6.7 1 6 584 2.0

Other 1 2.2 5 10.9 4 12.5 1 3.1 2 6.3 - - 1 40 2,652 8.9

2011 20152012 2013 2016

Global total

Total

Kyushu

Japan

As of year 20162014

Kyushu

Source: Prepared by Kyushu Bureau of Economy, Trade and Industry based on “Overseas business expansion of Kyushu- & Yamaguchi-based local companies 2016” by Kyushu Economic Research Center (Public Interest Incorporated Foundation) and “Comprehensive List of Japanese Companies with Business Abroad 2017 (Country-specific Edition)” by Toyo Keizai Inc.

Share (%)Share (%)Share (%)Share (%)Share (%)Share (%)

Page 22: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○Though the number of companies starting business overseas has been the largest in China until around 2011, recently it is larger in

ASEAN countries than China, and in 2016 nearly half of the total targeted ASEAN countries.

○ According to the year in which they started overseas operation, the number has been slightly decreasing after peaking at 56

businesses in 2010, and then keeping from 30 to 40 newcomers every year, however, it has fallen to 15 businesses at once in 2016.

○Looking at the companies by prefecture, Fukuoka has the largest number accounting for approx. 70% ,followed by Nagasaki and

Kumamoto.

Kyushu Businesses Expanding Overseas ②

Kyushu Businesses Expanding Overseas (by Prefecture)

(Cumulative Data 2016 )Changes in Destinations

(Based on the Number of newcomers each year)

17

China

25

12

5

6

2

2

2

2

2

2

3

1

2

2

3

4

2

Taiwan

2

11

15

9

13

16

ASEAN

8

1

2

India

1

1

5

1

2

EU

3

Russia

1

4

1

3

7

U.S.A.

1

1

Australia

1

2

6

Others

4

1

4

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

06

12

13

14

15

16

yrs

(Unit:Case)

Total 46

Total 32

Total 32

Total 32

Total 48

Total 15

Fukuoka

704

70.8%

Nagasaki

69

6.9%

Kumamoto61

6.1%

Oita60

6.0%

Miyazaki

44

4.4%

Kagoshima35

3.5%

Saga

21

2.1%

Kyushu Businesses

Expanding Overseas

by Prefecture

994 in Total

Source: Prepared by Kyushu Bureau of Economy, Trade and Industry based on “Overseas business expansion of Kyushu- & Yamaguchi-based local companies 2016” by Kyushu Economic Research Center (Public Interest Incorporated Foundation)

(Unit:Case,%)

Page 23: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○440 foreign affiliates(including branches, etc.) had entered the Kyushu market as of 2014, largely in Fukuoka(303), followed by

Kumamoto and Kagoshima.

○Nationalities of the parent companies of these affiliates (incl. branches) operating in Kyushu were U.S.A.(199), Germany(59), France

(35), and Switzerland and South Korea with 22 each.

○ Since 2010, there have been many affiliates entering Kyushu from U.S.A., Europe and South Korea.

Foreign Affiliates Operating in Kyushu

Foreign Affiliates in Kyushu (incl. Branches/ Offices)(2014)<440 in total>

【国籍別】

【Foreign Affiliates Operating in Kyushu after 2010 →】

18

【Prefecture-specific】

Fukuoka303

68.9%

Kumamoto36

8.2%

Kagoshima32

7.3%

Miyazaki21

4.8%

Nagasaki19

4.3%

Oita18

4.1%

Saga11

2.5%

Foreign Affiliates in

Kyushu (incl. branches/offices)

440 companies

Pref.Founded (Foreign

capital accepted)

Parent

NationalityType of Office Core Product / Service

Fukuoka 2010 South Korea Head Office Planning,/ Manufacture / Internet Sale of Sporting Goods

Fukuoka 2010 U.S.A. Branch Investment Management

Fukuoka 2010 U.S.A. Branch office Asset Management

Fukuoka 2010 South Korea Head Office Research / Development of Semiconductors/ Robots

Fukuoka 2011 South Korea Branch Manufacture/ Sale of Cable TV Receivers

Fukuoka 2011 Denmark Branch office Import/ Sale of Medical Equipment

Fukuoka 2012 U.S.A. OfficeImport/Export/ Sale / Development of GIS Software &Related Services (Maintenance, Training, Consulting, Publication)

Fukuoka 2012 U.S.A. Office Manufacture / Sale of Survey Instruments

Fukuoka 2012 South Korea Branch Import/ Sale of Solar Power Generation Modules

Fukuoka 2012 Switzerland Service Station Food Processing Facilities(Milling, etc.)

Saga 2012 U.S.A.Fulfillment

Center Support for Online Store Operations

Fukuoka 2013 Netherlands Branch International Air Travelers

Fukuoka 2013U.K /

NetherlandsBranch office

Manufacture / Sale Grease, Heat Treating Oils, Rust-Preventive Oils, Metal Working Fluids, Washing Oils, Lubrication Oils and Standard Solutions for Calibration of Viscometer

Oita 2013 U.S.A.Packaging

CenterSemiconductor Packaging Technology Development

Fukuoka 2014 China Head Office Provision of Cloud Marketing System

Source: Prepared by Kyushu Bureau of Economy, Trade and Industry based on

“Foreign Affiliates in Kyushu and Yamaguchi 2015” by Kyushu Economic Research Center (Public Interest Incorporated Foundation)

199

59

3522 22 18 17 14 9 8 6 6 6 5 3 2 2 2 1 1 1 1 1

0

50

100

150

200

250(Unit:Case,%)

U.S

.A.

Ger

man

y

Fran

ce

Swit

zerl

and

Ko

rea

Net

her

lan

ds

U.K

.

Ch

ina

Swed

en

U.K

.& N

eth

erla

nd

s

Sin

gap

ore

Taiw

an

Den

mar

k

Irel

and

Ho

ng

Ko

ng

Au

stra

lia

Can

ada

Bel

giu

m

U.K

. & It

aly

Isra

el

Swit

zerl

and

& G

erm

any

Thai

lan

d

Fran

ce &

U.K

.

Page 24: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ 2.31 million foreign visitors entered Japan via Kyushu in 2016 (up 12.9% YOY) that marked over 2 million for consecutive 2 years. By nationality, the largest number of entrants came from South Korea (60.1%), followed by Taiwan(12.9%)and China(8.4%). Kyushu has higher ratio of Asian entrants than other regions in Japan, and nearly 30% of total South Korean entrants in particular enters Japan via Kyushu.

○Recently more and more cruise ships call over at Kyushu ports. They visited Kyushu 715 times in 2016 that means the frequencyincreased from 497 times in 2015 by a little more than 40%. The frequency of cruise ships calling over at Hakata port and Nagasaki port was the highest and second highest respectively.

Foreign Visitors Entering Japan via Kyushu

←↑ Note:Excluding visitors using cruise ships; or ”Landing Permission for Cruise Ship Tourists” (Article14.2 of the Immigration Control and Refugee Recognition Act)

19

Foreign Cruise Ships Stopping Over at Kyushu

↑Source:PROFILE OF KYUSHU

Trends in Foreign Visitors (via Kyushu vs. All Japan)

Share of Foreign Visitors in Kyushu and Japan

40.4 32.7 34.3 38.1 39.4 44.3 45.5

56.4 63.1

79.1 92.7 87.0

59.8

100.1

72.6

105.7

121.6

147.7

204.5

231.0

0

2

4

6

8

10

12

14

16

0

50

100

150

200

250

1997 1998 1999 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 yrs

vs. Japan Total(%)(10 thousand people)

Foreign entrants (Kyushu) vs. Japan Total

23.0

South Korea60.1

17.3

Taiwan12.9

China, 22.3

8.4

7.5

Honk Kong

8.1

Other Asia13.6

5.4

North America

6.9

3.3

Europe

6.5

2.4

2.9

Others

0.7

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Japan

Kyushu

6126

8519

99

245312

39

17

72

35

70

128

190

45

8

27

16

29

51

80

6

5

44

13

35

73

133

0

100

200

300

400

500

600

700

800

2010 2011 2012 2013 2014 2015 2016

Port of Hakata Port of Nagasaki

Port of Kagoshima Other ports

(Unit :Frequency)

715

497

233

83

228

56

151

Source: “Statistical Survey on Legal Migrants” (Ministry of Justice)

Page 25: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○ Japan received 1,083,769 foreign workers in 2016 (up19.4% YOY) and the numbers over the past four years have continued to surpass the figures from each previous year. By region, the largest number of the workers are in Kanto (57.3%), followed by Chubu(15.9%)and Kinki(11.1%). By nationality, the largest number of workers come from China (incl. Hong Kong etc.)(31.8%), followed by Vietnam (15.9%) and Philippines(11.8%).

○In 2016, Kyushu received 59,053 foreign workers in Kyushu (up 21.9% YOY), accounting for 5.4% of Japan’s total. By industry, manufacturing industry accounts for the highest ratio of 28.2%, followed by wholesale and retail (15.1%)and hotel & restaurant service(9.3%) showing that manufacturing industry accounts for nearly 30%.

Foreign Workers in Kyushu

Foreign Workers by Region(Unit:people, %)

Foreign Workers in Japan by Nationality Foreign Workers in Kyushu and Japan by Industry

20

Kanto620,47757.3%

Chubu172,67015.9%

Kinki119,94411.1%

Kyushu59,053

5.4%

Chugoku47,3654.4%

Tohoku23,5432.2%

Shikoku19,6651.8%

Hokkaido15,0811.4%

Okinawa5,9710.6%

Number of Foreign

Workers in Japan

(2016)

1,083,769

China(incl. Honk Kong)

344,65831.8%

Vietnam172,01815.9%

Philippines127,51811.8%

Brazil106,597

9.8%

South Korea48,1214.4%

Nepal52,7704.9%

U.S.A.28,9762.7%

Peru

26,0722.4%

U.K.10,8591.0%

Others166,18015.3%

Number of foreignworkers in Japan

(2016)

1,083,769

20,642 25,049

29,367 31,702 29,777 33,125

39,656

48,462

59,053

4.2 4.5

4.54.6

4.44.6

5.0

5.3 5.4

0.0

2.0

4.0

6.0

8.0

10.0

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Number of Foreign Workers in Kyushu vs. Japan Total

(People) (%)

people Percentage vs. Japan Total

Manufacturing 16,637 28.2% 4.9% 338,535 31.2%

Wholesale and retail 8,946 15.1% 6.4% 139,309 12.9%Education and study support 5,108 8.6% 8.5% 59,963 5.5%Hotel and restaurant service 5,506 9.3% 4.2% 130,908 12.1%Construction 2,197 3.7% 5.3% 41,104 3.8%Information and communication 540 0.9% 1.2% 43,758 4.0%Service(not classified to others) 6,314 10.7% 4.1% 153,994 14.2%All except above 13,805 23.4% 7.8% 176,198 16.3%

Total 59,053 100.0% 5.4% 1,083,769 100.0%

Kyushu NationwideIndustry

people Percentage

Source: “Notification Status of Foreign Workers’ Employment Status” (Ministry of Health, Labor and Welfare)

(Unit:people, %)

Trends in Foreign Workers in Kyushu and The Ratio vs Japan’s Total

Page 26: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○In 2016, Kyushu received a total of 19,498 foreign students(up 12.3% YOY), which reached a record. By nationality, the largest number of them are from China (35.9%), followed by Vietnam(19.8%) and Nepal (15.6%), showing that the students from Asian countries account for more than 90% of the total.

○ Across Japan, 19,435 foreign students were hired by Japanese businesses in 2016, which greatly increased from the previous year (up 24.1% YOY). By occupation, “interpreter and translator”, “sales and marketing” and “overseas operation” are at the top of the list.

○ In 2016. 936 foreign students were hired by firms located in Kyushu (up 21.7% YOY) which was higher than the previous year, while accounting for only 4.8% of Japan’s total.

Foreign Students in Kyushu

(Unit:people, %)

Nationality-specific Foreign Students Accepted by Kyushu

21

7,176

8,886

10,383

11,084

11,546

11,784

12,516

13,693

15,140

17,488

18,082

17,611

17,780

17,830

17,365

19,498

9.1 9.3 9.5 9.4 9.5 10.0

10.6 11.1

11.4

12.3 13.1 12.8 13.1 12.8

11.4 11.4

0.0

3.0

6.0

9.0

12.0

15.0

0

5,000

10,000

15,000

20,000

25,000

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 yrs

Number of foreign

students

(%)(people)

121 102 106204

287394 428 451 428 419 429

560 567

699769

936

3.43.2

2.8

3.9

4.9 4.8

4.2 4.1

4.55.4

5.05.1

4.9

5.4

4.9 4.8

0

1

2

3

4

5

6

7

0

100

200

300

400

500

600

700

800

900

1,000

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 yrs

Number of

Foreign students

% in Japan total

(%)

Number of students Percentage Vs. Japan total

18,200 93.3% 11.6% 156,556 91.5%

China 7,005 35.9% 9.3% 75,262 44.0%

Vietnam 3,866 19.8% 13.5% 28,579 16.7%South Korea 1,581 8.1% 11.6% 13,571 7.9%

Nepal 3,037 15.6% 22.6% 13,456 7.9%Indonesia 625 3.2% 17.0% 3,670 2.1%

Thailand 482 2.5% 15.1% 3,185 1.9%

Taiwan 370 1.9% 5.8% 6,401 3.7%Malaysia 171 0.9% 6.6% 2,581 1.5%

Bangladesh 252 1.3% 18.0% 1,402 0.8%

Other Asian Countries 811 4.2% 9.6% 8,449 4.9%Middle East 136 0.7% 8.6% 1,587 0.9%

Africa 262 1.3% 14.1% 1,857 1.1%Oceania 86 0.4% 13.9% 618 0.4%

North America 216 1.1% 7.9% 2,742 1.6%South / Central America 107 0.5% 8.3% 1,293 0.8%Europe 491 2.5% 7.6% 6,466 3.8%

3 0.0%

19,498 100.0% 11.4% 171,122 100.0%Total

KyushuCountry/Region

Others(Stateless)

Number of students Percentage

Vs. Japan total

Nationwide

Source: Data from “International Students Survey - May 1. 2016” of Japan

Student Services Organization(Independent Administrative Institution).

Source: “2016 Survey on

International Students

Residing in Japan” –

Japan Student Services

Organization(Independent

Administrative Institution)

Source: “2016 Foreign

Students Hired by Japanese

Businesses” of Ministry of

Ministry of Justice Immigration

Bureau

Number of Foreign Students Hired by Kyushu-Based Businesses

Trends of Foreign Students in Kyushu

Asia

Page 27: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○In the trade between Japan and EU, both of the exports and imports account for nearly 10% of the total.

○Trade value of food products in 2016 was JPY 30.1 billion in exports (Share in Total : 5.2%) and JPY 673.4 billion in imports (Share in

Total: 11.8%), showing that a substantial excess of imports has continued for years.

○Import value of food products from EU accounts for slightly more than 10% of all. By commodity, there are some items with high ratio to

the whole imports, such as wine accounting for slightly more than 70%.

【Topic ①】 Trade Trends of Japan with EU

22

Japan’s Trade Trends with EU

2010 2011 2012 2013 2014 2015 2016

Exports 76,158 76,193 65,006 70,002 75,853 79,851 79,817

Imports 58,210 64,110 66,418 76,489 81,688 86,250 81,517

Vs.Total Exports 11.3% 11.6% 10.2% 10.0% 10.4% 10.6% 11.4%

9.6% 9.4% 9.4% 9.4% 9.5% 11.0% 12.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000(100 M yen)

Vs.Total ImportsRatio to total exportRatio to total exportRatio to total export

Wine

U.S.A.

11,560

20.3%

China

7,894

13.9%

EU

6,734

11.8%Thailand

3,940

6.9%

Australia

3,678

6.5%Canada

2,509

4.4%

Brazil

2,433

4.3%

South Korea

1,672

2.9%

Chili

1,666

2.9%

Vietnam

1,402

2.5%

Others

13,504

23.7%

Japan’s Total Import

of Food Products

from the World(2016 )

5699.2 billion yen

EU

1,196

72.9%

Chili

214

13.0%

U.S.A.

128

7.5%

Australia

44

2.7%

Argentina

22

1.4%

Others

36

2.2%

Wine

(2016)

164billion yen

Source: “Trade Statistics of Japan" (Ministry of Finance)

vs. Japan Total(%)

Japan’s Import of Food Products by Country or Region

2010 2011 2012 2013 2014 2015 2016

Exports to EU 165 155 148 199 230 284 301

Imports from EU 4,617 4,852 5,061 6,004 6,945 7,104 6,734

4.4 4.7 4.5 4.8 5.0 5.0 5.2

10.1 9.4 9.8 10.5 11.5 11.3 11.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

(%)(100 M yen)

Vs.Total Exports

Vs.Total Imports

Japan’s Trade Trends with EU for Food Products

(Unit:million yen, %)

(Unit:million yen, %)

Page 28: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○Regarding the impact of the Kumamoto Earthquakes in the mid April 2016 to Kyushu’s export trends, the exports declined greatly in each commodity and the total exports also dropped by 12.9% compared to the same month of the previous year.

○ In May, the following month, due to the considerable aftermath of the Earthquakes, the exports of parts of motor vehicles, cycles with engines and semiconductors etc. fell below the same month of the previous year. In addition, the rate of decline in cycles with engines and semiconductors etc. was expanded more than in April. On the other hand, the export of motor vehicles increased greatly by 25.5% compared to the same month of the previous year, which formed a remarkable contrast between items.

○For cycles with engines in particular, because the production bases in Kyushu were damaged by the Earthquakes, the export in June dropped by 85.5% compared to the previous year and a drastic decline continued until September.

○Since November, however, the export has turned positive in each item on a YOY basis and recovered as a whole.

YOY Trends of Kyushu Exports

by Commodity (2016)

【Topic ②】Impact of the Kumamoto Earthquakes(Trends in Export)

23

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

Motor

VehiclesParts of Motor

Vehicles

Cycles with

EnginesSemiconductors

etc.

Total

ExportsNationwide

(Total Exports)

Commodities January February March April May June July August September October November December

Motor Vehicles -3.6% 7.3% 1.4% -18.7% 25.5% 10.8% 20.5% 10.4% 22.4% 11.2% 36.3% 49.1%

Parts of Motor Vehicles 16.3% 39.7% 33.0% -5.1% -4.5% 13.7% 5.5% 27.6% 18.0% 15.0% 35.1% 19.7%

Cycles with Engines 3.4% -16.0% 12.1% -37.5% -75.4% -85.5% -73.9% -66.0% -14.6% 32.0% 22.1% 28.3%

Semiconductors etc. -18.8% -11.8% -4.1% -17.4% -37.7% -16.7% -9.4% -6.8% -8.6% -11.8% 25.7% 54.9%

Total Exports -14.4% -7.6% -0.5% -12.9% -14.8% -10.3% -12.9% -8.7% -4.9% -6.5% 11.0% 22.6%

Nationwide(Total Exports) -12.9% -4.0% -6.8% -10.1% -11.3% -7.4% -14.0% -9.6% -6.9% -10.3% -0.4% 5.4%

January February March April June July August September October November DecemberMay

Source: "Trade Statistics of Japan" (Ministry of Finance)

Page 29: Kyushu Economic Internationalization Data 2017 · Nevertheless, in worst-affected Kumamoto, the figures continue to be largely lower than the previous year. Outward / Inward Investments

○As a result of Kumamoto Earthquakes in April 2016, the number of overnight visitors in Kyushu decreased greatly YOY especially in

May. Also, the number of foreign visitors staying in Kyushu sharply declined by nearly 30% YOY.

○ Thanks to the subsidization program (Kyushu Restoration Discount) designed to assist tourism businesses in Kyushu with discounts

for travelers by the local governments and associated organizations to attract more tourists, the number of tourists staying in Kyushu

has been recovering to the previous year’s level by the gross. In addition, the number of foreign tourists staying in Kyushu has also

increasing.

○ Kumamoto and Oita which were directly affected by the Earthquakes, suffered a significant drop in the number of visitors just after the

Earthquakes, however, in August, it recovered to the level of the previous year in Oita where damage was rather smaller. But in worst-

affected Kumamoto, the number of visitors still remains largely below the previous year’s level.

← Trends in Total Foreign Tourists Staying in Kyushu

【Topic ③】 Impact of the Kumamoto Earthquakes (Tourism)

24▲ 100.0

▲ 50.0

0.0

50.0

100.0

150.0

2016

(%)

Saga

Miyazaki

Fukuoka

Kumamoto

Nagasaki

Oita

Kyushu

Nationwide

Kagoshima

1,000

2,000

3,000

4,000

5,000

6,000

100

200

300

400

500

600

700

To

tal

To

uri

sts(

In 1

000s)

Fo

reig

n T

ou

rist

s(In

100

0s)

Foreigners(2015) Total Tourists (2015)

↓Total Foreign Tourists for Prefecture of Kyushu YOY Trends

Foreigners (2016) Total Tourists (2016)

Source: “Accommodation Survey”

- Japan Tourism Agency

January February March April June July August September October NovemberDecemberMay

January February March April June July August September October November DecemberMay 24